Property and Equipment

12 Months Ended

Dec. 31, 2013

Notes to Financial Statements

Property and Equipment

Property and equipment consisted of the following at December 31:

	2013			2012
Computers and software	$	59,000		$	580,000
Machinery and equipment		251,000			535,000
Furniture and office equipment		86,000			87,000
Demonstration vehicles and buses		127,000			675,000
Leasehold improvements		-			1,327,000
		523,000			3,204,000
Less accumulated depreciation and amortization		(443,000	)		(2,897,000	)
Total	$	80,000		$	307,000

Depreciation and amortization expense was $130,000 and $466,000 for the years ended December 31, 2013 and 2012, respectively, which included amortization expense of leasehold improvements of $23,000 and $262,000 for the years ended December 31, 2013 and 2012, respectively.

Fixed assets totaling $405,000 and $482,000 were retired or disposed of in the years ended December 31, 2013 and 2012, respectively. For the year ended December 31, 2013, fixed assets with an original book value of $272,000 were exchanged in settlement of vendor payables, two vehicles were sold and four vehicles was repossessed.  For the year ended December 31, 2013, the Company recorded proceeds from the sale of fixed assets of $29,000 and a loss on the disposal of fixed assets of $29,000.  In addition, the Company’s headquarters lease expired on January 31, 2013, which resulted in a decrease in gross leasehold improvements in the amount of $1,327,000 and a net book value of zero.  For the year ended December 31, 2012, the Company recorded an impairment loss of $90,000 and loss on the disposal of fixed assets of $28,000.